Mobile homes are housing units built in production facilities and transported to their owner’s location. As opposed to conventional homes that are constructed on site, mobile homes are usually far cheaper and are often associated with rural areas and high-density developments.
Although these houses are usually placed in a permanent location, as the names suggests, they do have the ability to be shifted. This ability to be moved is required in many areas, where such homes are popular.
The unique selling proposition of this form of housing has undoubtedly been its mobility. Initially these homes were mainly marketed to people who led a mobile lifestyle, such as construction workers. However, beginning in the 1950s, mobile homes began to be looked upon as a cost effective alternative by people who could not afford a traditionally constructed home.
Mortgages to finance the purchases of mobile homes are comparatively harder to obtain and a few restrictions are applicable. Institutions providing mobile home finance prefer not to finance any homes that are more than 20 years old. Mobile homes with structural modifications or alterations do not qualify for finance because these alterations tend to decrease the value of the homes, since they can no longer be compared with standard mobile homes.
Although mortgages for mobile homes are available from some lending institutions, banks don’t usually finance mobile homes because the current default rates or foreclosure rates for these kinds of homes is far in excess of traditionally constructed homes. The tendency of mobile homes to depreciate quickly in resale value makes loans that use these kinds of homes as collateral far more risky, compared to traditional home loans. The terms of mobile home financing gets limited to far less than the typical thirty year terms of traditional home finance and interest rates are usually higher. With the rates low and there being no lack of customers for traditional homes, banks prefer not to deal with properties such as mobile homes, which entail a higher risk.
Related Articles of Interest :
-
New Jersey Mobile Home Mortgages
10 August 2010 8:30 PM |
No Comments
Many people in New Jersey prefer to buy mobile homes, as they offer lower mortgage interest rates than regular houses. They need to have a leased or owned land on which they can place their mobile homes. There are parks where mobile home owners can...
-
Mobile Home Refinancing
10 August 2010 8:30 PM |
No Comments
The housing units which are built in factories, parks or on any other rented land rather than the fixed sites are called Mobile homes. Whenever the owner wants to change his place of his house, then he can carry all the things of his mobile...
-
Manufactured Home Finance
10 August 2010 8:30 PM |
No Comments
Manufactured homes, like mobile homes, are housing units built in factories rather than being constructed at site like conventional homes. They are then taken to the place where they are going to be occupied, by tractor-trailers. They are usually much cheaper than traditional site-built homes...
-
Mobile Home Loans
10 August 2010 8:30 PM |
No Comments
Mobile home loans are a form of home loans widely found these days. As the name implies, this loan is for mobile homes that can be moved from one place to another. There are two types of mobile home loans available, loans to buy a...
-
California Mobile Home Mortgage Lenders
10 August 2010 8:30 PM |
No Comments
A mobile home, as the name suggests, is a moving residence. These can be readily purchased just like buying a fixed home. A mobile home is perfect for people constantly on the move, as it gives the convenience of a fixed home on the road....
-
Mobile Home Equity Loans
10 August 2010 8:30 PM |
No Comments
Mobile homes built on fixed foundations are appreciating properties x96 their values appreciate with the passage of time. Hence, after a few years of timely mortgage payments, the value of the mobile home will be much higher than what it was bought for. This difference...
-
Mobile Home Community Parks
10 August 2010 8:30 PM |
No Comments
Mobile home community parks are areas where several mobile homes are put up together. The people residing in the homes may be the owners of the homes themselves, or they may be tenants living in the homes on rent. There are about 1,500 to 2,000...
-
New Mobile Homes
10 August 2010 8:30 PM |
No Comments
It can be rightfully said that the chasm between mobile homes and traditional bricks and mortar homes is narrowing day by day. New mobile homes can be as trendy as they come, complete with all the amenities x96 both necessary and luxurious. In contemporary mobile...
-
Manufactured Home Loans
10 August 2010 8:30 PM |
No Comments
The word ‘manufactured’ gives one an idea of the type of house that falls in this category of home loans. Manufactured homes are factory built homes that can be transported to any location needed on their own chassis and wheels. For a finance institution to...
-
Mobile Home Loan Financing
10 August 2010 8:30 PM |
No Comments
Building a new mobile home is no longer a very distant dream. Apart from the routine loans and mortgages, a prospective buyer can avail of numerous other sources for funding and financing their new home. Financing a mobile home involves creative funding beyond the usual...